ANNUAL REPORT 2016 - August...

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AUGUST

INVESTMENTS

AUGUST INVESTMENTS PTY LTD ACN 002 106 603

ANNUAL REPORT

2016

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AUGUST INVESTMENTS PTY LTD

ANNUAL REPORT - 2016

CONTENTS

ber

Page Num Managers Report 3 Financial Summary 4 List of Investments 5 Directors' Report 6 Remuneration Report 7 Profit and Loss 9 Balance Sheet 10 Cash Flow Statement 11 Statement of Changes in Equity 12 Notes to Accounts 13 Directors' Declaration 21

Other Information Shareholders 22

Audit Committee Report 21 Directory 23 Printed versions of this Annual Report are on 100% recycled paper.

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A.C.N. 002 106 603

MANAGING DIRECTOR’S REPORT

FINANCIAL YEAR 2015/16

Three features stood out as noteworthy for the 2015/16 financial year: continuing high returns, increased nterest from investors and our return to community based investments. i CONTINUING HIGH RETURNS

Overall yield to investors was 12.9% pa (8.9% capital growth and 4.2% dividend yield). This is the lowest return for three years, but still pleasing. Dividends paid increased from $8.00 per share paid out during last ear to $11.00 paid for the current period. Further details are in the accounts and the summary information n page 4. yo INCREASE IN INVESTMENT

. After relatively slow growth in funds from investors for a number of years, this reversed during 2015/16 Investments received from new and existing investors increased the number of shares on issue by 8.5%. Together with growth in the value of our portfolio, this pushed our net asset value over $1M for the first time. This renewed interest was in part be due to our new Share Transfer and Buyback Policy, which facilitates the redemption of shares and it has continued into the new financial year. The Trustees of the Estate of one of our largest shareholders were able to transfer their shares to new investors in a remarkably quick time, with only half the investors interested in purchasing these shares being successful. Directors ill consider a Rights Issue later in the year to provide another opportunity to those investors who missed ut. wo COMMUNITY INVESTMENTS

August Investments started in 1981 with the aim of investing in a balanced portfolio with a small proportion to be invested in community projects. The balanced portfolio became the start of ethical investment in Australia, with our introduction of a positive screen being, as far as we know, a world first. Initially the community investments, based around Permaculture projects, were highly successful. However, over time, the community links dissipated and we made fewer such investments. Recent attempts to support community projects have been far from successful as investments. Hepburn Community Wind Park has been a success for the community, but investors have received no return and the Net Asset Value as slowly declined. Even our long term investment in Maleny Credit Union has been written down as the hreturn has been cut to way below the level that could be expected for the risks involved. Undaunted, a new wave of Community Solar projects have emerged and August Investments has taken small holdings (we would prefer larger holdings, but investment is limited) in Repower Shoalhaven #3 based around Nowra, NSW and Lismore Community Solar Farm (East) in Northern NSW. The latter nvestment was finalised in early July this year. We are of the opinion that these projects are aware of past istakes and should provide a reasonable return. Other such investments are on the radar.

im list of our portfolio investments can be found on A page 5. Ongoing news is posted on our website and on witter at @augustinvest. T

Damien Lynch Managing Director

http://www.augustinvestments.com.au/news

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ANNUAL REPORT - 2015/16

FINANCIAL SUMMARY

The following table summarises financial results for August Investments over the last five years. Year to 30 June 2016 2015 2014 2013 2012

$ $ $ $

Operating profit (before capita 16,377 10,766 13,076 11,185 9,475 l items) Gross profit/(loss) 173,742 204,645 122,943 97,071 before tax (note 1) (52,922Less Tax paid (65,896) (29,890) (18,492) ‐ ‐ Profit/(loss) after tax 107,846 174,755 104,451 97,071 (52,922) Net asset value 1,209,709 955,153 743,859 592,577 481,178

Notes

Note 1 Gross Profit before Tax includes realised capital gains and losses and other capital transactions.


TOTAL SHAREHOLDER RETURN

The following table shows results on a per share basis over the last five years. Year to 30 June 2016 2015 2014 2013 2012 Net profit/(loss) per $28.70 49.94 33.10 32.75 18.27) share (note 1) $ $ $ ($ Dividends per sh te $11.00 $4.00 $8.00 $8.00 $9.00 are (no 2) Value per share (note 3) $286.73 $263.71 $216.68 $193.24 $166.15 Capital gain/(lo s 8.72% 21.70% 12.13% 16.30% 3%) ss) per hare (14.4Dividend yield (note 4) 4.17% 1.85% 4.14% 4.81 % 4.64 % Total benefit/(loss) per share 12.89% 23.55% 16.27% 21.11% (9.29 %)

Notes

Note 1 Earnings per share are based on the average base number of shares on issue during the period.

Note 2 Dividends paid or provided for during the year. In 2015 the practice of providing for the final

dividend in the accounts was discontinued. The dividend declared was $5.00 per share.

Note 3 At 30 June, based on net assets as shown in the Accounts divided by the number of shares (see

Note 10 to the attached Annual Accounts). Franking credits and income tax benefits are not

included.

Note 4 The dividend rate is based on dividends paid and provided on Ordinary shares divided by the value

of shares at the end of the previous year.

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LIST OF INVESTMENT S

AS AT 30 JUNE 2016 $ $ 2016 2015 INTEREST BEA $ $

ank

RING DEPOSITS Bendigo B 15,000 30,000

1ING Bank 80,000 26,050

52

ME Bank 25,000 0,000 Bendigo Bank Red. Pref. Notes 47,750 9,100 AB Floating Preference Notes ateSetter peer‐to‐peer lending N 81,953 ‐. R 30,020 ‐.

379,723 135,150 TRUST INVESTMENTS

perty Fund

e ProAustralian Unity Offic 14,226 12,523 La Trobe Term Mortgages 56,000 28,000 rilogy Income Fund estlawn Property Trust

T 30,000 40,000 W 26,240 20,800

126,466 101,323 LISTED SHARES

vestments 35,280 Australian Ethical In 55,906 Aconex Ltd 17,175 ‐

stralia ide Bank

Bellamy’s Au 14,294 ‐ Bendigo & Adela 17,088 24,520

4Blackmores 53,870 8,926

nergy Beacon Lighting 11,560 27,000

E 4,05Carnegie Wave 12,270 0 Capilano Honey 10,626 69,120 Genex Power 18,135 ‐

34,856

Hansen Technologies 35,948 nergy Stapled 23,115

ities Infigen E 21,440 Ingenia Commun 17,220 ‐ JB Hi‐Fi ‐ 38,960

ce Mobile Embra 13,725 22,785 Meridian Energy 40,338 22,420

ower My Net Fone 27,200 29,414 Mighty River P 41,760 27,500

Redflow Ltd 13,878 13,440 Select Harvest 35,115 14,740

33,486Touchcorp 13,727 TFS Corporation 17,202 19,581

ne Tassal Group ‐ 37,962

O 12,925Technology 21,170 45,747TPG Telecom 27,156

Vmoto Ltd ‐ 12,150 Holdings Communications (/ Amcom Telecom)

Vitaco 23,587 ‐ ocus ther

V 20,048 13,260 O 34,731 25,635

628,417 637,873 COMMUNITY INVESTMENTS

8,480estment Shares)

Hepburn Wind 8,314 aleny Credit Union (Invepower Shoalhaven #3 M 20,100 30,000 R 7,175 . ‐

35,589 38,480 FORESTRY CONTRACTS

ry and Land acquarie ForestM 5,717 14,172

TFS Sandalwood 11,750 11,750 17,467 25,922

Total Investments 1,187,662 928,748

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A.C.N. 002 106 603

DIRECTORS’ REPORT

FOR THE YEAR ENDED 30 JUNE 2016

our directors present their report on the company for the financial year Ended 30 June 2016. he names o ffice at any time during or since the end of the year are: YT

f the directors in o

an Thomas GoodmDamien Lynch Elliot Hayman

irectors have been in office since the start of the financial year to the date of this report, except s shown. Da Activities The profit/loss of the company for the financial year was a profit of $107,846 (2015: $174,755). The Operating profit/loss of the company net of investment related and extraordinary items was a profit of $22,232 (2015: profit of $10,766). The following financial statements have not been audited, in accordance with shareholder resolution of 19 December 2002. The company’s Audit ommittee has examined these accounts and has confirmed them to be true and fair, as outlined Con page 21. he principal activity of the company during the financial year was investment in environmentally Tpositive shares and securities. No significant changes in the company’s state of affairs occurred during the financial year. No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years. No new developments have occurred in the affairs of the company which would have a significant impact on the company. he company’s operations are not regulated by any significant environmental regulation under a Tlaw of the Commonwealth or of a State or Territory. A final dividend for the 2014/15 year of $18,765 ($5.00 per Ordinary Share) was paid on 1 ecember 2015 (2014: $13,676 ‐ $4 per share) plus an interim dividend for the 2015/16 year of

re). D$23,340 ($6.00 per Ordinary Share) was paid on 1 June 2016 (2015: $12,568 ‐ $4.00 per sha o indemnities have been given or insurance premiums paid, during or since the end of the N

financial year, for any person who is or has been an officer or auditors of the company. No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings. The company was not party to such proceedings during the year. a

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AUGUST INVESTMENTS PTY LIMITED

ACN. 002 106 603

DIRECTORS REPORT - YEAR ENDED 30 JUNE 2016 Directors’ shareholdings irectors of the company and/or their immediate family held the following shares and options (at

se sha mpany oDcurrent value to directors) to purcha res in the co n 30th June:

Number of alue f Shares nce ance

Number Estimated vo Performa of Perform Rig

Rights hts

$ Damien Lynch 784 8 2,058 lliot Hayman homas Goodman E 15 8 2,058

952T 8 2,058 1,524 24 6,174

or details of Performance Rights, see the following Remuneration Report. F Directors’ meetings

mpan ny year as follows: Directors of the co y attended meetings of the compa during the 2015/16

or Name of Direct Meetings Entitled o Attend t Meetings ttended A Damien Lynch 8 8 Elliot Hayman 7 7 homas Goodman 8 8 T

Options Information

o options were issued during the year and there are no outstanding options. N

REMUNERATION REPORT


he company’s Managing Director is entitled to receive an annual fee of $6,000, but may elect not Tto draw down the full amount.

o retirement benefits for directors were paid or provided for. N

Continued over ....

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A.C.N. 002 106 603

REMUNERATION REPORT


(continued)

irectors do not receive cash payments. However, they are remunerated from time to time by the

oved by shareholders. Dissue of Performance Rights to be granted shares at a future date as appr

irect rs’ remuneration paid or granted during the last two years were: D o

Total Fees Total 2015/16 2014/15

Wages Share Based Share Based & S

uper Payments* Payments*

$ $ $ $ $ $

r) 5 6, 4Damien Lynch (Managing Directo ,475 957 432 ,380 463 4,843 lliot Hayman homas Goodman E ‐ 957 957 ‐ 463 463

‐ 957 957T ‐ 463 463 5,475 2,871 8,346 4,380 1,389 5,769

*The Share Based payments above relate to the issue of Performance Rights to Directors as set out elow, including the estimated accrued future value of such Rights. b etails of Performance Rights on issue to directors, including those issued during the current D

period, are as follows:

g

estin umber esting date ranted Price

V N V Estimated Estimate Current D G Probability Current Accrual

of Vesting Value Accrual

99% 30/6/2017 12 $215.00 $3,201 $1,287 30/8/2019 12 $240.00 $2,97386% $1,584

24 $6,174 $2,871

o Performance Rights vested during the current period N The Directors’ Report and the Remuneration Report were signed in accordance with a resolution f the Board of Directors: o

homas Goodman (Chairman) Elliot Hayman (Director) T Dated 26 September 2016

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ACN. 002 106 603

PROFIT & LOSS


Note 2016 2015 $ $

ue Interest/dividend reven 2 ain from investments 2

38,608 30,984 186,779G 237,306 22 6 Total Revenue 5,387 2 8,290

expenses

n 6Administratio 4,191 ,569

Brokerage fees 2,157 1,727

ents Depreciation ‐ ‐ Directors’ fees and entitlem 6 2,872 5,882

uneration 5,4 4,3ses

Managers rem 75 80 Forestry contract expen 1,605 1,498 Interest paid 77 162 Losses on investments 3 35,268 43,427

51,645Total Expenses 63,645 rofit (Loss) from ordinary a

173,742 204,645 P ctivities before income tax expense

) ncome tax benefit / (expenseelating to ordinary activities 4 (65,896)Ir (29,890) Net profit (Loss) from ordinary activities after income tax attributable to members of the company 11 107,846 174,755 Earnings per shares $28.70 $49.94 The accompanying notes form part of these financial statements.

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ACN. 002 106 603

BALANCE SHEET

AS AT 30 JUNE 2016 Note 2016 2015 $ $

1 9 CURRENT ASSET

ts d income

S Cash asse 1 1,190 53,274 Accruether

2,731 2,186 5,162O 152

OTAL CURRENT ASSETS 99,083 55,981 T NONCURRENT ASSETS INVESTMENTS 1,187,662 938,748

R NONCURRENT ASSETrty, plant and equipment

OTHEPropeOther

S ‐ ‐ ‐ ‐

TOTAL NONCURRENT SSETS 1,187,662 938,748A

TOTAL ASSETS 1,286,745 994,729

3CURRENT LIABILITIES

373 ,469 Payables urrent accounts irectors’ entitlem nts ,174

Shareholder c 4,132 7032 Provision for d 6 Tax liabilities 5

e 6 ‐ 65,061 29,075

TOTAL CURRENT LIABILITIES 75,740 39,576

NONCURCreditors 1,296

RENT LIABILITIES

TOTAL NONCURRE NT LIABILITIES 1,296

TOTAL LIAB

ILITIES 77,035 39,576 NET ASSETS 1,209,709 955,153 EQUITY

Share Capital 6 871,610 682,795 Reserves 7 72,439 132,862

Retained profits 265,660 139,496 OTAL EQUITY 1,209,709T 955,153

Net Tangible Assets per share $286.73 $263.71

he accompanying notes form part of these financial statements. T

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ACN. 002 106 603

CASH FLOW STATEMENT

AS AT 0 JUNE 2016 3

Note 2016 2015 $ $ Cash Flows from Operating Activities

d 2 1Dividends receive 0,656 7,270 Distributions received 12,981 10,126

pliers (1

Interest received 3,611 5,157 ayments to sup 3,426) (13,848)

1,599PIncome tax paid (18,271) Net cash provided by operating activities 11 25,421 434 Cash Flows from Investing Acti

( 5

vities

4,434 ,46

Decrease/I(Increase) in debtors ) 1 7 itors and equipment

Decrease/I(Increase) in Cred 1,296 (88) ‐Payment for property, plant ‐

Capital Gain on investments 108,377 81,487 apital Loss on investments (22,552)

Investments held (213,923)CDecrease/I(Increase) in (80,864) et cash provided by/ used in) investing activities (131,236) (14,932) N( Cash Flows from Financing

Activities

hare issuesorrowings

Proceeds from s 176,796 41,145 ovements in b (6,981) (678)

(26,084)MDividends paid (9,114) Net cash used in financing activities 143,730 31,353 Net Increase/(Decrease) In Cash Held 37,916 16,855 Cash at Beginning of the Financial Year 53,274 36,419

Cash at the End of the Financial Year 11 91,189

53,274


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ACN. 002 106 603

STATEMENT OF CHANGES IN EQUITY

AS AT 30 JUNE 2016 Notes Share Reserves Retained Total Capital Profits $ $ $ $ Year 2014/15 Opening bala 31,920 43,859

50,875

nces at 1 July 2014 6 19,842 92,097 7 Shares issued 6 50,875

1 profit/loss) 7 113,020 (

Profit/(loss) for year 174,755 74,755 eserve transfers (unrealised 113,020) ‐ ividends paid/provided for (14,336) (14,336

RD ) Closing balances 30 June 2015 682,795 132,862 139,496 955,153 Year 2015/16 Opening bala 682,795 955,153

188,815

nces at 1 July 2015 132,862 139,496

188,8151

Shares issued 6

profit/loss) 7 (60,423 Profit/(loss) for year 107,846 07,846 eserve transfers (unrealised ) 60,423 ‐ ividends paid/provided for (42,105) (42,105

RD ) Closing balances 30 June 2016 871,610 72,439 265,660 1,209,709


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ACN. 002 106 603

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report is a special purpose financial report as the directors have determined that the company is a reporting entity. The financial report has been prepared in accordance with applicable ccounting Standards, Urgent Issues Group Consensus Views and other authoritative pronouncements of Athe Australian Accounting Standards Board. he financial report is that of August Investments Pty Ltd as an individual entity. August Investments Pty TLimited is a company limited by shares, incorporated and domiciled in Australia. The financial report has been prepared on an accruals basis and is based on historical costs and does not ake into account changing money values or, except where stated, current valuations of investments and

ssets. tnon‐current assets. Cost is based on the fair values of the consideration given in exchange for a The following is a summary of the material accounting policies adopted by the company in the reparation of the financial report. The accounting policies have been consistently applied, unless t ted. po herwise sta

a. Income Tax he company adopts the liability method of tax‐effect accounting whereby the income tax expense is Tbased on the profit from ordinary activities adjusted for any permanent differences. Timing differences, which arise due to the different accounting periods in which items of revenue and expense are included in the determination of accounting profit and taxable income, are brought to account s either a provision for deferred income tax or as a future income tax benefit at the rate of income tax aapplicable to the period in which the benefit will be received or the liability will become payable. Future income tax benefits are not brought to account unless realisation of the asset is assured beyond ny reasonable doubt. Future income tax benefits in relation to tax losses are not brought to account aunless there is virtual certainty of realisation of the benefit. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the ompany will derive sufficient future assessable income and comply with the conditions of deductibility mposed by the law. ci b. Property, Plant and Equipment and Other Non Current Assets Each class of property, plant and equipment is carried at cost, less any accumulated depreciation. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets employment and subsequent disposal. The xpected net cash flows have not been discounted to present values in determining the recoverable eamounts. The depreciable amount of all fixed assets are depreciated on a straight line basis over their useful lives to

se. the company commencing from the time the asset is held ready for u

each class of deprecia The depreciation rates used for ble assets are:

Rate Class of Asset Depreciation Plant and equipment 16% to 33%

No value is attributed to the August Investments name or the August Investments business.

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ACN. 002 106 603


c. Investments Investments are shown separately in the Statement of Financial Position on the basis they may be held either for the short or long term Investments are measured on a market value basis, except that woodlot contracts with Macquarie Eucalypt and TFS Sandalwood Projects are valued at initial cost. It is noted that here is some risk to the value of forestry assets based upon the current state of the market for woodchip, tongoing housing markets and the high Australian dollar. nrealised capital profits (losses) on these investments are transferred to the Unrealised Profits Reserve. U

Tax effect accounting is not applied. he carrying value of investments is reviewed annually by directors to ensure it is not in excess of the Trecoverable amount of these investments. The recoverable amount is assessed from the quoted market value for shares in listed companies and for non‐listed shares whichever is the less of most recent of either 90% of the most recent issue price of shares by the relevant company or the most recent price at which such shares were traded, except that Hepburn Community Wind Co‐Op is valued at the most recent net tangible asset value per unit, Maleny Credit Union Investment Shares which have been devalued by 33% to reflect the reduced income on these shares and Repower Shoalhaven #3 shares and loan are valued at cost. The expected net cash flows from investments have not been discounted to their present value in determining the recoverable amounts. d. Revenue Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to he financial assets. Dividend revenue is recognised when the right to receive a dividend has been testablished.

e service. Fees for the rendering of a service are recognised upon the delivery of th All revenue is stated net of the amount of goods and services tax (GST). apital gains on the sale of investments are recognised at the time of disposal. Net gains from the evaluation of investments are recognised on the basis set out in note 1c above. Cr e. Ordinary shares The company currently has only Ordinary shares on issue. These all rank equally, providing dividends to hareholders, one vote per share at shareholder meetings of the company and a equal right to the assets of sthe company in the event of winding up. In arriving at an asset value for each Ordinary share in the company, the company provides a value based on the actual number of shares of issue (the Base Value) and an adjusted value based on the probable dilutive effect of Performance Rights to directors being exercised at future times (the Diluted Value). This djustment takes into account the number of Performance Rights to be vested, the time to vesting and the robability that vesting will occur. ap f. Comparative figures hen required, comparative figures have been adjusted to conform with changes in presentation for the urrent financial period. Wc

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ACN. 002 106 603


NOTE 2: REVENUE

per

2016 2015 $ $

1O ating activities

2‐ Dividends received 0,372 8,086 ‐ Interest received 13,532 9,577

Trust Distributions 3,604‐ 3,321 38,608 30,984 Operating income

1‐ Capital gain/profit on the sale of

233, 51,ts

investments 606 660 en

ons ‐ Revaluation gains on investm (47,707) 85,434

try Contract distributi 880‐ Fores 212 Capital items income 186,779 237,306 Total Revenue from ordinary activities 225,387 268,290

NOTE 3: EXPENSES rofit from ordinary activities before income tax Expense has been determined after the following tems are included, but not separately shown on the face of the Statement of Financial Performance: Pi 2016 2015 $ $ I stment related expenses

ents

nve

Capital loss on disposal of investm 22,551 49,342 Revaluation loss on investments

12,716 (5,915)

36,267

43,427 Employee Entitlements

year. The company had no permanent employees during the Details of directors’ entitlements are shown in Note 6.

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ACN. 002 106 603


NOTE 4: INCOME TAX EXPENSE 2016 2015

$ $

m ordinary Prima facie tax payable on profit fro

come tax at 30% 52,123 61,394 activities before in dd TaxA effect of:

ting

un

Capital losses – acco ‐ ‐ interest accrued (net) (162) 337

tation credits ,612 1,531f investments ,127 (27,405

Impu 1 18 ) Revaluation o

ess: L Tax effect of:

try contracts ‐ ‐ distributions

fores Tax deferred & other trust 429 863

xpense 7 3

Total Income Tax e 1,269 4,993 Less Imputation credits 5,372 5,103 Net Income Tax Expense 65,897 29,890

here were no tax related Capital losses to be carried forward (2015: zero). T Balance of imputation credits at 30 June 29,021 12,608 Current Year provision for Income tax 65,061 29,075 Total available imputation credits 94,082 41,693 N OTE 5: TAX LIABILITIES

Income Tax current year 25,897 29,890

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ACN. 002 106 603


NOTE 6: CONTRIBUTED EQUITY M shares

Number of Shares Amount $

ovements in share capital fully paid ordinary

erage of $241.14 p.s.

Opening Balance @ 1/7/2014 3,419 631,920 hares issued during year at av 203S 50,875 Closing Balance @ 30/6/2015 3,622 682,795

erage of $316.27 p.s. Opening Balance @ 1/7/2015 3,622 682,795 hares issued during year at av 597S 188,815 losing Balance @ 30/6/2016 4,219 871,610 C Performance Rights erformance rights are issued to directors of the company in lieu of other payment. The following n

Pco ditions must be met for performance rights to be exercised: a. The growth in the share price of August Investments, adjusted for dividend, franking and tax amounts

paid, shall be greater than the growth in unitholder value for the IREES Wholesale Unit Trust Growth Index over a period the vesting date.

. A director must have been in such office for at least 12 months during the life of the Performance Right g they are required to attend.

band must have attended at least 75% of the company meetin

During the year no performance rights were vested or expired.

ted: At 30 June 2016 the following Performance Right authorised by shareholders are yet to be ves

Estim rrent Vesting Date Number Vesting Estimated Probability ated Cu Gra d of V g V nte Price estin alue 30/6/2017 12 $215.00 99% $3,201

30/8/2019 12 $240.00 86% $2,973 24 $6,174

NOTE 7: RESERVES 2016 2015 $ $ Unrealised profits reserve

m) Profit & Loss:

Opening balance 158,690 27,056 ransfer to/(fro (47,707T ) 131,634 losing Balance 110,983C 158,690 Unrealised loss reserve

m) Profit & Loss:

Opening balance (25,828) (7,214) ransfer to/(fro (12,716T ) (18,614) losing Balance (38,544C ) (25,828) Tota Reserves 72,439l 132,862

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ACN. 002 106 603


NOTE 8: DIVIDENDS

Dollars Total Date of per share amount $ payment

014/15 nterim dividend 2014/15 4.00 14,336 1/6/2015 2I Up till the 2014/15 the final dividend was provided for in the accounts in the year to which it related. In line ith revised general practice, this was discontinued for the 2014/15 year. Hence, only one dividend payment s show,n though a final dividend from the 2013/14 year of $4.00 per share was paid on 1/12/2014. wi 2015/16 inal dividend 2014/15 5.00 /12/2 15 nter m /16 6.00 F 18,765 1 0

i dividend 2015 23,340I 1 Total 2015/16 41,105

/06/2016 ll dividends declared are fully franked. Franking Credit details are shown in Note 4. Shareholders may lect to have their dividends reinvested in new shares in the company. Ae NOTE 9: EARNINGS PER SHARE 2015 2014

$107,846 $174,755 Profit attributed to shareholders eighted average number of shares

he year (Number) 3,757.8Won issue during t 3,499.5 arnings/(loss) per Ordinary share $28.70 $49.94 E NOTE 10: NET TANG

$1 9

IBLE ASSETS PER SHARE et Tangible Assets ,209,70 $955,153 umber of shares on issue @ 30/6/15 4,219 3,622

NN Basic Net Tangible Assets per share $286.73 $263.71 D iluted Net Tangible Assets per share N/A* N/A*

*From the 2014/15 financial year directors’ entitlements based on the estimated future value of Performance ights are included in the accounts so that their dilutive effect is not treated separately. R

angible assets are the same. The company has no intangible assets, therefore net assets and net t

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ACN. 002 106 603


NOTE 11: CASH FLOW INFORMATION Reconciliation of net profit/(loss) after tax to the cash flows from operations 2016 2015 $ $

et Profit/(Loss) 107,846 174,756 N

Non–cash items:

d ived

Dividends receive (815) (815) rece 7

(552) Distributions 549 Interest received 1,834

162eration

Interest paid ‐ Directors’ remun ‐ 5,882

ciation ‐e tax paid 67,496 11,

Depre ‐ Incom 619 Other 114

(2Changes in investments included in profit/lo

11ts 60

ss: Capital Gains/(Losses) on investments ,054) (102,318)

Revaluation/(Write Down) of investmen ,424 (91,350) Forestry investment treated as expense (880)

‐ Net cash from operating activities 25,421 434 NOTE 12: CAPITAL COMMITMENTS Nil Nil N E

Nil

OT 13: CONTINGENT LIABILITIES Nil

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ACN. 002 106 603


NOTE 14: EVENTS SUBSEQUENT TO BALANCE DATE final dividend of $6.00 per share (estimated total amount: $26,574) to be paid on 1 December 2016 was Adeclared by directors after the balance date. Apart from the above, no matters have occurred since balance date that would be required to be reflected in these financial statements. However, it should be noted that the market values of investments may ave varied between the balance date and the date of signing this financial report. Such variances, positive nd negative, will be booked to the Statement of Financial Performance for the next year. ha NOTE 15: RELATED PARTY TRANSACTIONS irector Damien Lynch receives remuneration as Managing Director. There were no other related party ransactions Dt NOTE 16: COMPANY DETAILS he registered office of the company is: 81 Henry St, Penrith, NSW, 2750. The principal place of business Tis: 21 Blaxland Rd, Wentworth Falls, NSW, 2048. The principal activities of the company are investing in financial assets.

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Dated: 21 July 2016


A.C.N. 002 106 603

DIRECTORS DECLARATION

he directors of August Investments Pty Limited have determined that the Company is a Treporting entity and declare that: . the financial statements and notes as set out on pages 9 to 20 are in accordance with 1

the Corporations Act 2001,

‐ comply with Accounting Standards and the Corporations Regulations 2001; and

‐ give a true and fair view of the financial position of the Company at 30 June 2016 and of the performance for the year ended on that date.

. in the directors’ opinion there are reasonable grounds to believe that the Company will

be able to pay its debts as and when they become due and payable. 2

his declaration is made in accordance with a resolution of the Board of Directors. T

homas Goodman (Chairman) Elliot Hayman (Director) T Dated 26 September 2016


A.C.N. 002 106 603

AUDIT COMMITTEE REPORT

We have examined the financial statements of August Investments Pty Ltd for the financial year ended 30 June 2016, questioned the company manager in relation to aspects of these statements and have examined documentation in relation to a selection of transactions underlying these tatements. This examination is as authorised by the shareholders’ resolution of 19 December s2002.

tatements of August ial position as at

Based on the above examinations, it is our opinion that the financial snvestments Pty Ltd give a true and fair view of the company's financI30 June 2016 and of its performance for the year ended on that date.

his Report is signed in accordance with a resolution of the Audit Committee. T

Barry Thompson Claude Walker

‐22‐


A.C.N. 002 106 603

ANNUAL REPORT


OTHER INFORMATION

Top 20 Shareholders

he twenty s eholders having the largest number of shares in the company on 30th June are: T

har

Name Total Shares H eld

D J Lynch 631

Pearson

Estate of D W 424 T Goodman 394 I R Hayman 352

S T & N Goodman 294

v. Pty Ltd Arnon Pty Ltd 264

Nurturing Evolutionary De 241 O Santa Clause 203

trustees ent Fund Pty Ltd

E & B Thompson, 178 n Retirem

Gee Ferguso 155

D Lynch & M 133 11

E Kubo 23 H Creamer 09

s B&L McCallum 70

y trustee H Thompson & M Kenn 61 Brindle Grange Pty Ltd trustee 46 S Amies 53 R Dawson 50 R Stephenson 40 A Gleeson 35

hareholders:

Shares held by top 20 s 3,868

4, Total Shares on issue: 219 Total number of shareholders 41

‐23‐


A.C.N. 002 106 603

ANNUAL REPORT

Directory

egistered Office: R Level 1

81 Henry St 0

Penrith NSW 275

usiness Address:

21 Blaxland Road alls NSW 2782

B Wentworth F

ostal Address:

PO Box 144 lls NSW 2782

P Wentworth Fa

Phone: 0428 650 601

: Email [email protected]

u Web: www.augustinvestments.com.a D Thomas Goodmirectors: an (Chairman) Damien Lynch

Elliot Hayman

Advising Accountant:

Neil Cottle

r eet

Lower Russell & FarLevel 1, 81 Henry StrPenrith NSW 2750

ANNUAL REPORT 2016 - August...

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